The pound strengthened yesterday, heading for its biggest monthly rise in more than a decade as the combination of a weak dollar and the falling risks of Britain leaving the EU without a deal fuelled demand.
As the dollar was weakened by comments from the US Federal Reserve after its interest rate cut on Wednesday, the pound strengthened to near five-month highs. While the immediate catalyst for the pound’s gains was a cautious US Federal Reserve, the broader base for the pound’s rally this month was some progress on the Brexit deadlock.
Boris Johnson, who has failed to deliver on his ‘do or die’ promise that Britain would leave the EU on 31st October, secured agreement for an election on 12th December after the EU granted a third delay to Brexit.
13:30 – USD: Average Hourly Earnings m/m 0.3%.
13:30 – USD: Non-Farm Employment Change 90k.
13:30 – USD: Unemployment Rate 3.6%.
15:00 – USD: ISM Manufacturing PMI.